Generally a power of apointment is used in estate planning. For example, a donor may want to give authority to a fiduciary/donee to apoint assets in the fiduciary/donee's discretion to an incapacitated beneficiary. A power of appointment can be included in a power of attorney, a will, or a trust. Where a donor does not want to give a fiduciary a power of appointment, it is important to make that desire clear in estate planning documents in order to avoid an IRA argument that the assets the fiduciary is simply managing as a fiduciary are actually part of the fiduciary's estate for estate or gift tax purposes.
Hughes Estate Group Attorneys
The entries in this blog written by Craig E. Hughes or any other attorney at Hughes Estate Group (rather than by staff), will include the attorney’s name at the end of the entry. The materials available at this web site are for informational purposes only and not for the purpose of providing legal advice.